The main focus taken by the auditor in verifying liability balances is on the discovery of:
A) understated liabilities.
B) overstated liabilities.
C) unrecorded liabilities.
D) overstated or extraneous liabilities.

Question

Quizplus · Accepted Answer

The auditor's main focus in verifying liability balances is on the discovery of unrecorded liabilities. This is because unrecorded liabilities can have a material impact on the financial statements, and they can be difficult to detect.

The Main Focus Taken by the Auditor in Verifying Liability